Central Trust Co. Of New York v. Grant Locomotive Works (Two Cases)

135 U.S. 207
CourtSupreme Court of the United States
DecidedApril 28, 1890
DocketNos. 1,277, 1,281
StatusPublished
Cited by1 cases

This text of 135 U.S. 207 (Central Trust Co. Of New York v. Grant Locomotive Works (Two Cases)) is published on Counsel Stack Legal Research, covering Supreme Court of the United States primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Central Trust Co. Of New York v. Grant Locomotive Works (Two Cases), 135 U.S. 207 (1890).

Opinion

Mr. Chief Justice Fuller

delivered the opinion of the Court.

The appeals in 1277, 1278, 1279 and 1280 were taken from the orders of January 28, 1889, requiring payment for the use of the- Grant Locomotive Works, and R. S. Grant, of .the, amounts decreed December 22, 1883, (less what had been received in the intermediate period,) and in execution of said decrees, from the purchasers of- the Southeastern Division, and from the purchasers of the Cincinnati Northern Division, of the Toledo, Cincinnati and St. Louis Railroad Company., *222 These purchasers bought subject to the provisions of the decrees, the ternas of sale, and the orders confirming the sales, which were the source of their title, and which provided for the payment down of a .specified sum in cash, and of such further portions of their bid in cash as might be necessary in order to meet such other claims as the court might adjudge to be prior in equity to the mortgages, with the reservatión of a ■ right of resale in case of default .in this particular; and the right, title and interest they acquired was expressly made subject to these provisions. Costs, fees arid expenses of sale, receiver’s expenses and indebtedness, and claims awarded priority, were to be first paid. The balance of their bid they could pay in cash or in first mortgage bonds. That bid, in the instance' of the Southeastern Division, was $500,000, and the purchasers were not required by the orders in question to pay any amount in excess thereof. Neither the purchasers of the Cincinnati •Northern Division, nor- their assignee, the Cincinnati, Lebanon and Northern Kail way Company, took any appeal.

It does not appear to. us that the Dayton, Fort Wayne and Chicago Kailroad Company, the assignee of the purchasers of the Southeastern .Division, has an appealable interest in the premises.

The purchasers were bound to pay such portions of their bid in cash as the court might" direct, to meet other claims, and whether the payments of their bids were to be made for the beriefit of the bondholders, or partly for the bondholders and partly for the benefit of the appellees, it is clear that they, as purchasers, and the railroad company, as their assignee,, had no interest in the matters affected by the decrees appealed from.

In Swann v. Wright's Executor, 110 U. S. 590, 601, Swann had purchased the railroad under a decree, which provided that the sale should be subject to the liens already establishedy or which might be established on references then pending, as prior and superior to the lien yf the mortgage, and the claim of Wright was one of this' class. It was pending before the master and reported on after the sale, when the purchaser applied to oppose its confirmation, and was not allowed to do so; and the sale was afterwards confirmed, expressly subject *223 to all liens established as specified in the decree of sale. Swann afterwards filed a bill to set aside Wright’s claim, for fraud in its inception, which was dismissed,.and the dismissal, affirmed on the ground that the. property was purchased expressly subject to all established claims, or claims that might be established on- references then pending, which included Wright’s. “ If the court,” observed Mr. Justice Harlan, delivering” the opinion, “had in the decree of sale reserved to the purchaser, although not a party to- the proceedings, the right to appear and contest any alleged liens then under examination, and, therefore, not established by the court, an entirely different question would have been presented. But no such, reservation was made; and the purchaser was required, without qualification, to take the property, upon confirmation of the sale, subject to the liens already established, or which might, on pending references, be established as prior and supe-, rior to the liens of the first mortgage -bondholders. . . . All that we decide is, that in view of the express terms of the 'decree of sale, and since neither the purchaser nor his grantee proposes to surrender the property to be resold for the benefit of those concerned, such purchaser has no standing in court for the purpose of re-litigating the liens expressly subject to which he bought and took title.”

In Stuart v. Gay, 127 U. S. 518, under a decree for the foreclosure of certain liens, which contemplated the payment of the purchase money, on the sale, in money, in annual instalments, Stuart purchased, and by a subsequent order was 'allowed to be «credited on unpaid purchase money with various liens he had acquired. From a later order in respect to allowances of interest upon certain prior liens he appealed to this court, and it was held that he had no appealable interest, as\a purchaser of the property, because it was a matter of indifference to him as such how the proceeds of the sale should be-distributed among the creditors.

It is argued, however, that the purchase of the Soutneastern Division wasTiot made subject to the -decrees of December. 22, 1883, because it is said that at the time of the purchase “ these decrees were dead and thought to be beyond *224 resurrection; ” and that a purchaser buying ■ under such circumstances ought to have the right. to resist their reappearance.” This would hardly be contended if the orders of April 10, 1884, were void for want of jurisdiction to enter them. Those orders were not made upon a bill of review or .a bill in that nature, nor upon any petition for rehearing, which under equity rule 88 could not then have been filed if the decrees of December 22, 1883, were final and appealable. On March 15, 1884, the. Central Trust Company filed certain petitions which it asked'might be treated as petitions for rehearing or in review, but the court made no order in regard to them, and did not predicate its action upon them. On the contrary; it was specifically set forth that the orders of December 22,1883, were annulled and set aside “ by the court of its own motion.”

If these'orders were final decrees, the court could not vacate them of its own motion after the close of the October Term, 1883. McMicken v. Perin, 18 How. 507, 511. "We think they were final. They determined the ownership. of the locomotives and the right to their possession; that they were essential to the operation of the roads by the receiver, a,nd should be. purchased by him; that certain designated amounts should be paid for the rentals and the purchase price, which amounts were made a charge upon the earnings, income and property of the Toledo, Cincinnati and St. Louis Railroad Company, and especially of the particular divisions named-; and that the amounts should be paid by the receiver, and any balance remaining unpaid at the date of .the foreclosure and sale of the railroad, or. the particular division, should be a first lien thereon and the sale be made subject thereto. They were, therefore, final in their nature, and made upon matters distinct from the general subject of litigation, the foreclosure of the mortgages.

In Trustees v. Greenough, 105 U. S. 527, an appeal from an order for the allowance of costs and expenses to a complainant, suing on behalf of a trust fund, was sustained. In

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Central Trust Co. v. Grant Locomotive Works
135 U.S. 207 (Supreme Court, 1890)

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